Welcome to the RR Donnelley First Quarter 2011 Results Conference Call. My name is Mitch, and I'll be your moderator for today's conference. [Operator Instructions] Please note that this conference is being recorded. I would now like to turn the call over to Dave Gardella. Mr. Gardella, you may begin.

Dave Gardella

Thank you, Mitch. Good morning, everyone, and thank you for joining us for RR Donnelley's First Quarter 2011 Results Conference Call. Earlier this morning, we released our earnings report, a copy of which can be found in the Investors section of our website at rrdonnelley.com.

During this call, we'll refer to forward-looking statements that are subject to uncertainty. For a complete discussion, please refer to the cautionary statement included in our earnings release and further detailed in our annual report on Form 10 K and other filings with the SEC.

Further, we will discuss non-GAAP and pro forma financial information. We believe the presentation of non-GAAP and pro forma results provides you with useful supplementary information concerning the company's ongoing operations and is an appropriate way for you to evaluate the company's performance. They are, however, provided for informational purposes only. Please refer to the press release and related footnotes for GAAP information and a reconciliation of GAAP to non-GAAP information. We also posted to our website, in the Investors section, a description as well as reconciliations of GAAP measures to which we will refer on this call.

We are joined this morning by Tom Quinlan, Dan Leib and Drew Coxhead. I'll now turn the call over to Tom.

Thomas Quinlan

Thank you, Dave, and good morning, everyone. This morning, after my opening remarks, I will turn it over to Dan Leib to take you through the quarter and our recent announcements in more detail. As previously announced, Miles McHugh is moving on. We wish Miles nothing but the best, and all of us thank him for his quality contributions, of which there has been many.

To most of you, Dan Leib is a familiar voice. He has been with us since May of 2004. Dan was heard on a number of these calls and many of you met him when he served as Vice President of Finance and Investor Relations. Since then, he has played key roles for us in operational finance, treasury, M&A and most recently as our group CFO. Dan's broad experience and diverse background has enabled a seamless transition into his new position as our Chief Financial Officer, and I'm very pleased to welcome Dan in this new role.

Before turning to a discussion of our first quarter, I will address our continuing commitment to pursuing a balanced approach to the deployment of capital. This approach and our debt maturity profile combined to provide the opportunity to return cash to shareholders, the flexibility to act when appropriate acquisition candidates arise and the ability to make capital expenditures that will yield returns to sustain RR Donnelley's position as the leader in our industry. In this context, and given our cash flow outlook, we believe that a leverage target in the range of 2.5 to 3x EBITDA on an ongoing basis is appropriate.

Our board of directors has authorized $1 billion share repurchase program, the first $500 million of which will be executed through an accelerated share repurchase, or ASR. The balance may be done through one or more additional ASRs and are -- and/or open market repurchases. Given the high dividend yield and the tax deductibility of the interest expense, we expect the repurchase to be a cash-positive transaction on an ongoing basis. Our board has also indicated an intention to maintain the dividend at the current annual level of $1.04 per share. RR Donnelley's strong cash flow, continuing stream of innovations, diverse product and service mix, and global reach position us to continue to drive value through the effective deployment of capital.

Now let me briefly recap the first quarter. We delivered $0.33 of non-GAAP earnings per share on revenue of nearly $2.6 billion. The 7% increase in revenue as compared to the first quarter of 2010 reflects the impact of the Bowne acquisition, in addition to the few smaller acquisitions that I will talk about a little later. Adjusting for the impact of these acquisitions, our first quarter revenue declined by approximately $10 million but it is important to note that this year-over-year decline was skewed by the nonrecurring United States Census work that we were rewarded in 2008. The most significant portion of the revenue associated with that complex, multiyear, nearly $50 million project was recognized in the first quarter of 2010. Looking forward, we remain on track to deliver the full year revenue growth, margin and cash flow guidance that we communicated on our last call.

As you know, RR Donnelley reached an important threshold during 2010, with revenues derived from business services constituting more than 10% of our total revenues. This trend continued during Q1 with revenues from our business services surpassing 12% of our total revenue. For example, our logistic services segment saw a strong growth with revenues up 18.6%, as we continue to leverage our scale as well as expand our service offering for our clients. Our domestic financial services platform, on a pro forma basis inclusive of Bowne, grew in excess of 5%, which demonstrates the value that our newly combined entity will continue to drive for our clients.

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